Purpose

The Cabinet Member will consider a proposed procurement strategy to procure two Waste Treatment contracts for the Treatment of Dry Recycling (Contract 2) and the second for the Treatment of Organic Waste (Contract 3) respectively.

Decision

Summary of Decision

The Cabinet Member for City Management has approved the procurement strategy outlined in the report to procure a contract for the Treatment of Dry Recycling (Lot 1) for an initial three-year contract period with an option to extend for a further two years with an estimated value of £32 million exclusive of VAT (£38.4 million inclusive of VAT) over the full five-year contract period, and a contract for the Treatment of Organic Waste (Lot 2) for an initial three-year contract period with an option to extend for a further two years with an estimated value of £32 million exclusive of VAT (£38.4 million inclusive of VAT) over the full five-year contract period.

Reasons for Decision

As the two current contracts for Dry Recycling and Organic Waste expire on 31st March 2027, new contract arrangements beyond this date need to be put in place to safeguard the council’s future recycling and organic waste services. The two contracts provide recycling and composting capacity for a combined 70,000 tonnes each year. This includes capacity to continue to increase the separate collection of Dry Recycling and Organic Waste. The waste treatment contracts work in the background of the Collection Contract and have no direct customer facing element.